Wednesday, October 11, 2006

Shot fired?

Today I think we were going to find a nice down day (nice for me at least) off of some bad fed comments. Then a plane hit a building and the market dropped two or three handles, turned around and headed up when people new what was going on. So, basically more bad news shrugged off (dont forget DNA, legg mason, and alcoa all having terrible days).

I think one of the threats the economy faces is deflation but the fed would never utter that word. ESPECIALLY not before an election (conspiracy or not).

Second - housing. Fed seems to have no grasp on the size of the fallout (if there is one) and what the ramifications are.

Maybe, MAYBE MAYBE this is the first day of a nice decline although my gut tells me otherwise. regardless my PA remains short.